Duplex from Roofstock

[Aaron Moayed]

Hi, all...

I just wanted to get some opinions of the following duplex:
https://www.roofstock.com/inve...

I'm curious for those BRRRR/Rehab enthusiasts out there... do you see any potential with this property? Check the inspection reports out (leak from upstairs). It seems like there's a decent amount of work renovating, but these low entry points and high rents make me think some upfront capital and some of the rent being reinvested into the place over a year or two could make it a lot better/profitable?

Thoughts?

[Jason G.]

Originally posted by @Aaron Moayed:

Originally posted by @Jason G.:

Originally posted by @Aaron Moayed:

Hi, all...

I just wanted to get some opinions of the following duplex:
https://www.roofstock.com/inve...

I'm curious for those BRRRR/Rehab enthusiasts out there... do you see any potential with this property? Check the inspection reports out (leak from upstairs). It seems like there's a decent amount of work renovating, but these low entry points and high rents make me think some upfront capital and some of the rent being reinvested into the place over a year or two could make it a lot better/profitable?

Thoughts?

If you look at market prices, the property is on the high end already.  

Jason, how has your experience with roofstock been?
I see you have a few properties from them.
Any post-purchase inspection issues being that they don't allow for inspection contingencies in the purchase agreement?

The appraisal caught an electrical issue that the inspection did not on the first property.  I discuss it at length in my own Roofstock thread.  Since it was my first property I was all freaked out over it, but in the end it wasn't anything significant.  I probably wouldn't have bat an eye if it happened now.  However, at one point we were considering diversifying into Ohio also, but we had issues with that.  The seller didn't want to fill out the disclosure.  After insisting on it they did and it revealed they had to repair water intrusion into the basement.  We proceeded forward, but then they have point of sale inspections there and the city hit them with a ton of violations, one being the water intrusion that they claim they corrected.  We waited quite awhile, trying to give them time to correct the violations, but then I believe Roofstock told us the seller disagreed with the violations and was trying to fight them.  At that point we pulled out.  We ended up picking up a duplex on Roofstock which we are very happy with right after that, so it didn't dissuade us from using them at all. Inspectors aren't perfect, they miss things and sellers aren't always forthright whether it be to Roofstock or a regular agent, but after purchasing one property outside of Roofstock and attempting to purchase a second and paying for quite a few failed inspections, we realized that there is a lot of value in Roofstock.